Gresham raises £340m for Gresham 4 fund within one month

Gresham, the UK mid market private equity specialist, today announces that it has raised £340m in its Gresham 4 fund, just one month after launch. The fund was over- subscribed at the hard cap.

Investors committing to Gresham 4 comprise pension funds, fund of funds, insurers, a government body and family offices, from the UK, Europe and the USA. Investors include Access Capital, AlpInvest, ATP Private Equity Partners, Morley Fund Management and Standard Life Investments.

Gresham invests in UK mid market management buy-outs up to £100m. Mid market companies form the backbone of the UK economy accounting for nearly one third of the UK’s employment and turnover. The opportunities to create value within this market are significant.

Gresham invests in a wide range of businesses to provide a balanced and diversified portfolio with particular focus on five key growth sectors: business & support services; consumer; financial services; healthcare/pharmaceuticals; and industrial products. Offices in London, Birmingham and Manchester give direct access to locations which account for three quarters of buy-outs in the UK.

Gresham has a long history of making private equity investments and returns have been impressive achieving an IRR of 34% and a 2.5x multiple on all realised investments since 1980. Recent investments include: Swift Technical Group, the market leader in global recruitment and relocation in the oil and gas sector; Giles, one of the UK’s fastest growing commercial insurance brokers; and Just Trays, the UK’s leading manufacturer of shower trays.

Paul Marson-Smith, Chief Executive of Gresham comments: “I am thrilled that Gresham has raised Gresham 4, over-subscribed, in such a short time frame. This demonstrates the strength of Gresham’s track record and investors’ appetite for the fund. We are pleased to welcome back existing investors and new investors in Gresham 4. We have an international and diverse base of LPs, some of the best in the world.”

“We are delighted that Gresham III is performing so well. We have enjoyed a tremendous investment rate, have built a clean portfolio with real uplift and have already achieved successful early exits.”

“Our absolute focus is on investing in quality businesses, backing the very best management teams in the UK. Our regional profile means that we expect to invest around half of the money raised in the South of England, with the remainder split between the Midlands and the North of England.”

Doug Miller of IPEL advised Gresham on the fund raising, Macfarlanes provided legal assistance and the auditors were KPMG.